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eLynx, Ltd. Secures Major Equity Partner
December 21, 2004
- Agreement Will Enhance Services to Mortgage Industry Customers and Expand Services Into New Markets -
CINCINNATI, Dec. 21, 2004 -- eLynx Ltd., the leading provider of secure electronic document delivery (EDD) services to the mortgage industry, announced an investment by American Capital Strategies Ltd. (Nasdaq: ACAS) to assist eLynx in its next phase of mortgage industry leadership and new market growth. According to the agreement, eLynx will retain its name, corporate identity, current staff and continue to operate from its Cincinnati headquarters.
"We welcome American Capital as our equity partner and majority shareholder," said Phil Huff, CEO and co-founder of eLynx. "This partnership provides eLynx with the financial strength and business resources to broaden our service offerings and continue our growth as a leading electronic document service provider to the financial services Industries."
"Both eLynx' customer relationships and its position as the mortgage industry standard for secure EDD make it an attractive investment partner," said American Capital Principal, Todd Wilson. "Our investment in eLynx is consistent with our desire to invest in companies with high potential and with strong management teams with vision."
"We believe eLynx can look forward to significant growth opportunities in the mortgage space and other verticals within the financial services industry,” added American Capital Managing Director Robert Klein. "We will work with eLynx so that it has the resources to develop products and services in advance of customer needs. And, we are committed to supporting innovation that will keep eLynx well ahead of competitive offerings.""American Capital understands our current needs and future goals," Huff continued. "Their strategic expertise and investment will better enable us to lead our customers through the challenges of rapid technological change, shifting Federal requirements and ever-present e-mail security and functionality problems.”
About eLynx
Founded in 1994, eLynx was the first to develop a web-based EDD processing system for securely transmitting mortgage documents. The company now provides secure EDD and electronic signatures to the mortgage industry through its web posting service (“WPS”) and uSignTM products, respectively. WPS is constructed with proprietary code that enables clients to securely deliver electronic documents through the use of a common Web browser and save up to 75% of traditional paper delivery costs.
In 2003, with the introduction of uSign, eLynx became the first company to integrate e-signature capabilities into a commercially viable EDD solution uSign. In addition, the company has recently launched eLynx PRO, which provides a neutral, desktop platform that installs in minutes, captures documents from any application, interfaces with the user via a familiar email-like appearance and provides Web-based security.
eLynx now serves more than 100 customers, including six of the top 10 and 16 of the top 30 mortgage lenders. Among its key customers are Wells Fargo Home Mortgage, National City Mortgage, Golden West Financial, GreenPoint, HSBC Mortgage and ditech.com. In 2003 and 2004, eLynx was included in Mortgage Technology Magazine’s “Top 100 Mortgage Technology Vendors” list.
In addition to its Cincinnati-based headquarters, the company has offsite data facilities in Chicago and Atlanta. For more information about eLynx secure electronic processing solutions, go to elynx.com.
About American Capital
American Capital is a publicly traded buyout and mezzanine fund with capital resources of more than $4.8 billion. American Capital is an investor in and sponsor of management and employee buyouts, invests in private equity buyouts, and provides capital directly to private and small public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions and recapitalizations.